News & Analysis as of

Attn. General Counsel: Big Changes are Coming to Wage-and-Hour Law

The White House has already taken steps to propel no less than three significant changes in wage-and-hour law, all of which could have wide-ranging effects on employers of all sizes. The likely changes include an increase in...more

Quick Quiz: Pay For Being In On-Call Status

Chris is a non-exempt computer Help Desk employee. During one workweek of each calendar quarter, after his normal shift ends he leaves his workplace but is on-call for eight hours a day for each of seven days. On average,...more

Third Circuit: Federal Court Should Decide Whether An Arbitration Clause Authorizes Classwide Arbitration – Not The Arbitrator

The Third Circuit recently was presented with the question of whether, in the context of an otherwise silent contract, the availability of classwide arbitration is to be decided by a court rather than an arbitrator. The...more

Washington Supreme Court Decision May Spur Joint Employer Class Actions

In a matter of first impression, the Washington Supreme Court has held that the "joint employer doctrine" is a viable theory under Washington's Minimum Wage Act (WMWA), and adopted the Fair Labor Standards Act's economic...more

Good Things Come To Those Who Document Good Wage & Hour Practices

We have written in the past about the myth of unauthorized overtime. A recent California appellate case, Jong v. Kaiser Foundation Health Plan, shows how you can make unauthorized overtime’s impact on your business a myth,...more

Employees in Maryland Can Now Get Treble Damages for Overtime Claims

On August 13, 2014, the Maryland Court of Appeals held in Peters v. Early Healthcare Giver, Inc. that unpaid overtime wages are recoverable under the Maryland Wage Payment and Collection Law (MWPCL or "Wage Payment Act"). ...more

Maryland Court of Appeals: Contrary to Federal Court Rulings, Maryland Employees Are Eligible to Recover Treble Damages from...

More bad news for employers: Maryland’s Court of Appeals (its highest court) has now put to rest any question about an employee’s right to recover treble damages in connection with an unpaid overtime claim....more

Late Payment Resulted In An FLSA Violation

A recent decision by the U.S. Court of Claims underscores important propositions under the federal Fair Labor Standards Act to the effect that: - Failing to pay non-exempt employees the FLSA-required minimum-wage or...more

California Supreme Court Limits the Use of California's Commissioned Salesperson Exemption

The California Supreme Court recently released an important decision regarding California's "commissioned salesperson" exemption. To qualify for this exemption to California's overtime laws, an employee must: (1) earn at...more

Update on Orozco v. Plackis: was franchisor’s principal the employer of franchisor’s employee? Fifth Circuit reverses – 3...

We reported in September 2013 about Orozco v. Plackis, a case out of the United States District Court for the Western District of Texas in which the plaintiff (a cook in a franchised restaurant) filed an action under the Fair...more

Week in Review

It’s been an interesting week on the wage and hour legal front. One of the big names in social networking, LinkedIn, made headlines this week when the U.S. Department of Labor announced a settlement of allegations that...more

EAT hears holiday pay appeals

Kate Hodgkiss, a Partner in our Edinburgh office, comments: At the end of last week the Employment Appeal Tribunal (EAT) heard complex legal arguments in the appeals in Bear Scotland and Hertel/Amec; better known as the...more

Department of Labor Press Release Highlights Heightened Scrutiny of "Per Diem" Payments

Last year, the DOL announced an eye-popping $2 million Fair Labor Standards Act (FLSA) settlement with Hutco, Inc, a labor services firm, for Hutco’s miscalculation of “per diem” payments to temporary workers and contractors....more

All Change for Holiday Pay?

The European Court of Justice (ECJ) has considered whether commission payments should be taken into account when calculating holiday pay in the recent case of Lock v British Gas Trading Limited (C-539/12)....more

The Commissioned Salesperson Exemption Just Got More Difficult to Establish

Many California employers rely on California's commissioned salesperson exemption from overtime for their inside sales employees. That exemption, however, is becoming increasingly difficult to establish. A recent decision...more

Dispelling Employment Myths Series – Issue 7: No Overtime for You!

Employment Myth #7: “My secretary worked 60 hours in the first week of the pay period and 20 hours in the next one, so she doesn’t get any overtime.” Under the Fair Labor Standards Act (FLSA), non-exempt employees are...more

Peabody Decision Tightens Requirements for Commission Payments and Exempt Status

State and federal law create an exemption from overtime compensation for employees engaged in sales who satisfy specific criteria. Although the requirements under each set of laws are not identical, each generally provides...more

U.S. Supreme Court Grants Review of Restrictions on Federal Agency Rulemaking in Mortgage Loan Officer Overtime Case

In our July 2013 alert, we reported on a federal appellate court ruling in Mortgage Bankers Association v. Harris. Mortgage Bankers Association challenged a U.S. Department of Labor (DOL) 2010 opinion letter in support of...more

New Jersey Bill Seeks to Expand Overtime and Minimum Wage Exemption to Private Summer Camp Employees

Currently, New Jersey overtime and minimum wage laws do not apply to summer camps (and other summer conferences and retreats) operated by non-profit or religious corporations or associations. On June 5, 2014, the Assembly...more

California Supreme Court Splits From Federal Law on Commissioned Employee Exemption Compliance

On July 14, 2014, the California Supreme Court clarified the commissioned employee exemption from overtime under California law. In Peabody v. Time Warner Cable, Inc., the court confirmed that calculations necessary to...more

Federal Court: Employer’s Method of Calculating Overtime Violated Pa. Statute

A federal district judge in Pennsylvania recently found that RadioShack’s method of computing overtime violates the Pennsylvania Minimum Wage Act (PMWA). In Verderame v. RadioShack Corp., the plaintiff brought a putative...more

Financial Advisors Advance Their Cause for Overtime Pay

According to Judge Frank Maas of the U.S. District Court for the Southern District of New York, the first step was taken in the settlement process between Merrill Lynch & Co. and over 500 field financial advisors. Recently...more

Remember to Calculate Overtime Pay Based on Your Employees' "Regular Rate of Pay"

When a non-exempt employee is entitled to overtime compensation, the hourly rate of pay from which the overtime compensation is calculated is known as the employee's "regular rate of pay." If an employee subject to...more

Supreme Court Agrees To Hear Trade Group Challenge To Mortgage Loan Officer Compensation Guidance

On June 16, the U.S. Supreme Court consolidated and agreed to hear two related cases regarding the Department of Labor’s (DOL) 2010 interpretation of its regulations under the Fair Labor Standards Act that mortgage loan...more

New Department of Labor Rule to Limit Live-In Employees Eligible for Exempt Status

The Fair Labor Standards Act (FLSA) has long provided an exemption for overtime wages to employees engaged in "companionship services," such as in-home caretakers who sleep at their patients' homes. Recently, however, the...more

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